[Aetna logo] Aetna Life Insurance and Annuity Company
Home Office: 000 Xxxxxxxxxx Xxxxxx
P.O. Box 30670
Hartford, Connecticut 06150-0670
(000) 000-0000
You may call the toll-free number shown above for answers to questions or to
resolve a complaint.
Aetna Life Insurance and Annuity Company, a stock company,
herein called Aetna, agrees to pay the benefits stated in this Contract.
Specifications
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Plan
SPECIMEN
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Type of Plan
SPECIMEN
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Contract Holder
SPECIMEN
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Contract Number
SPECIMEN
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Effective Date
SPECIMEN
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This Contract is delivered in SPECIMEN and is subject to the laws of that
jurisdiction
The variable features of the Group Contract are described in parts III and IV.
Right to Cancel
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The Group Contract Holder may cancel this Contract within 10 days by returning
it to the agent from whom it was purchased, or to Aetna at the address shown
above. Within seven days of receiving the Contract at its home office, Aetna
will return the amount of Certificate Holder Purchase Payment(s) received, plus
any increase, or minus any decrease, on the amount, if any, allocated to the
Separate Account fund(s).
This page and the pages that follow constitute the entire Contract.
Signed at the home office on the Effective Date.
/s/Xxxxxx Xxxxxxx /s/Xxxxx X. Xxxxxxxxx
President Secretary
Group Variable, Fixed, or Combination Annuity Contract
Nonparticipating
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT FORMULA.
APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN INCREASE OR
DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT
APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
Specifications
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Guaranteed There is a guaranteed interest rate for Purchase
Interest Rate Payment(s) held in the AG Account. (See Contract
Schedule I).
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Deductions from There will be deductions for mortality and expense
the Separate risks and administrative fees. (See Contract
Account Schedule I and II).
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Deduction from Purchase Payment(s) are subject to a deduction for
Purchase premium taxes, if any. (See 3.01.)
Payment(s)
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Surrender There will be a charge deducted upon surrender. (See
Fee Contract Schedule I).
This Contract is a legal contract and constitutes the entire legal relationship
between Aetna and the Contract Holder.
READ THIS CONTRACT CAREFULLY. This Contract sets forth, in detail, all of the
rights and obligations of both you and Aetna. THEREFORE, IT IS IMPORTANT THAT
YOU READ THIS CONTRACT CAREFULLY.
2
Contract Schedule I
Accumulation Period
Separate Account
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Separate Account: Variable Annuity Account B
Charges to Separate A daily charge is deducted from any portion of the
Account: Current Value allocated to the Separate Account.
The deduction is the daily equivalent of the
annual effective percentage shown in the following
chart:
Administrative Charge 0.15%
Mortality Risk Charge 0.35%
Expense Risk Charge 0.90%
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Total Separate Account
Charges 1.40%
ALIAC Guaranteed Account (AG Account)
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Minimum Guaranteed 3.0% (effective annual rate of return)
Interest Rate:
Separate Account and AG Account
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Transfers: An unlimited number of Transfers are allowed
during the Accumulation Period. Aetna allows 12
free Transfers in any calendar year. Thereafter,
Aetna reserves the right to charge $10 for each
subsequent Transfer.
Maintenance Fee: The annual Maintenance Fee is $30. If the
Account's Current Value is $50,000 or more on the
date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
3
Contract Schedule I (Continued)
Accumulation Period
Separate Account and AG Account (Cont'd)
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Surrender Fee: For each surrender, the Surrender Fee will be
determined as follows:
Length of Time from Deposit of Net Surrender Fee
Purchase Payment (Years) (as percentage of
Net Purchase Payment)
Less than 2 years 7%
2 or more but less than 4 years 6%
4 or more but less than 5 years 5%
5 or more but less than 6 years 4%
6 or more but less than 7 years 3%
7 years or more 0%
Systematic Withdrawal The specified payment or specified percentage may
Option (SWO): not be greater than 10% of the Account's Current
Value at time of election.
See 1. GENERAL DEFINITIONS for explanations.
4
Contract Schedule II
Annuity Period
Separate Account
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Charges to Separate A daily charge at an annual effective rate of
Account: 1.25% for Annuity mortality and expense risks. The
administrative charge is established upon election
of an Annuity option. This charge will not exceed
0.25%.
Variable Annuity Assumed If a Variable Annuity is chosen, an assumed annual
Annual Net Return Rate: net return rate of 5.0% may be elected. If 5.0% is
not elected, Aetna will use an assumed annual net
return rate of 3.5%.
The assumed annual net return rate factor for 3.5%
per year is 0.9999058.
The assumed annual net return rate factor for 5.0%
per year is 0.9998663.
If the portion of a Variable Annuity payment for
any Fund is not to decrease, the Annuity return
factor under the Separate Account for that Fund
must be:
(a) 4.75% on an annual basis plus an annual
return of up to 0.25% to offset the
administrative charge set at the time
Annuity payments commence if an assumed annual
net return rate of 3.5% is chosen; or
(b) 6.25% on an annual basis plus an annual return
of up to 0.25% to offset the administrative
charge set at the time Annuity payments
commence, if an assumed annual net return rate
of 5% is chosen.
Fixed Annuity
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Minimum Guaranteed 3.0% (effective annual rate of return)
Interest Rate:
See 1. GENERAL DEFINITIONS for explanations.
5
TABLE OF CONTENTS
I. GENERAL DEFINITIONS
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Page
1.01 Account ........................................................... 9
1.02 Accumulation Period ............................................... 9
1.03 Adjusted Current Value ............................................ 9
1.04 ALIAC Guaranteed Account (AG Account) ............................. 9
1.05 Annuitant ......................................................... 9
1.06 Annuity ........................................................... 9
1.07 Beneficiary ....................................................... 9
1.08 Certificate Holder ................................................ 9
1.09 Code .............................................................. 9
1.10 Contract .......................................................... 9
1.11 Contract Holder ................................................... 9
1.12 Current Value ..................................................... 9
1.13 Deposit Period .................................................... 10
1.14 Dollar Cost Averaging ............................................. 10
1.15 Fixed Annuity ..................................................... 10
1.16 Fund(s) ........................................................... 10
1.17 General Account ................................................... 10
1.18 Guaranteed Rates - AG Account ..................................... 10
1.19 Guaranteed Term ................................................... 10
1.20 Guaranteed Term(s) Groups ......................................... 10
1.21 Maintenance Fee ................................................... 11
1.22 Market Value Adjustment (MVA) ..................................... 11
1.23 Matured Term Value ................................................ 11
1.24 Matured Term Value Transfer ....................................... 11
1.25 Maturity Date ..................................................... 11
1.26 Net Purchase Payment(s) ........................................... 11
1.27 Nonunitized Separate Account ...................................... 11
1.28 Purchase Payment(s) ............................................... 11
1.29 Reinvestment ...................................................... 11
6
Page
1.30 Separate Account .................................................. 12
1.31 Surrender Value ................................................... 12
1.32 Transfers ......................................................... 12
1.33 Valuation Period (Period) ......................................... 12
1.34 Variable Annuity .................................................. 12
II. GENERAL PROVISIONS
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2.01 Change of Contract ................................................ 12
2.02 Change of Fund(s) ................................................. 13
2.03 Nonparticipating Contract ......................................... 13
2.04 Payments and Elections ............................................ 14
2.05 State Laws ........................................................ 14
2.06 Control of Contract ............................................... 14
2.07 Designation of Beneficiary ........................................ 14
2.08 Misstatements and Adjustments ..................................... 14
2.09 Incontestability .................................................. 14
2.10 Grace Period ...................................................... 15
2.11 Individual Certificates ........................................... 15
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
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3.01 Net Purchase Payment .............................................. 15
3.02 Certificate Holder's Account ...................................... 15
3.03 Fund(s) Record Units -- Separate Account .......................... 15
3.04 Net Return Factor(s) -- Separate Account .......................... 16
3.05 Fund Record Unit Value -- Separate Account ........................ 16
3.06 Market Value Adjustment ........................................... 16
3.07 Transfer of Current Value from the Funds or AG Account ............ 17
3.08 Notice to the Certificate Holder .................................. 18
3.09 Loans ............................................................. 18
3.10 Systematic Withdrawal Option (SWO) ................................ 18
3.11 Death Benefit Amount .............................................. 20
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Page
3.12 Death Benefit Options Available to Beneficiary .................... 20
3.13 Liquidation of Surrender Value .................................... 22
3.14 Surrender Fee ..................................................... 22
3.15 Payment of Surrender Value ........................................ 23
3.16 Payment of Adjusted Current Value ................................. 23
IV. ANNUITY PROVISIONS
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4.01 Choices ........................................................... 23
4.02 Terms of Annuity Options .......................................... 24
4.03 Death of Annuitant/Beneficiary .................................... 25
4.04 Fund(s) Annuity Units -- Separate Account ......................... 26
4.05 Fund(s) Annuity Unit Value -- Separate Account .................... 26
4.06 Annuity Net Return Factor(s) -- Separate Account .................. 26
4.07 Annuity Options ................................................... 27
8
I. GENERAL DEFINITIONS
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1.01 Account: A record established for each Certificate Holder
to maintain the value of all Net Purchase Payments
held on his/her behalf during the Accumulation
Period.
1.02 Accumulation Period: The period during which the Net Purchase
Payment(s) are applied to an Account to provide
future Annuity payment(s).
1.03 Adjusted Current Value: The Current Value of an Account plus or minus any
aggregate AG Account MVA, if applicable. (See
1.22)
1.04 ALIAC Guaranteed An accumulation option where Aetna guarantees
Account (AG Account): stipulated rate(s) of interest for specified
periods of time. All assets of Aetna, including
amounts in the Nonunitized Separate Account, are
available to meet the guarantees under the AG
Account.
1.05 Annuitant: The person whose life is measured for purposes of
the guaranteed death benefit and the duration of
Xxxxxxx payments under this Contract.
1.06 Annuity: Payment of an income:
(a) For the life of one or two persons;
(b) For a stated period; or
(c) For some combination of (a) and (b).
1.07 Beneficiary: The individual or estate entitled to receive any
death benefit due under the Contract. If the
Account is held by joint Certificate Holders, the
survivor will be deemed the designated
Beneficiary and any other Beneficiary on record
will be treated as the contingent Beneficiary.
1.08 Certificate Holder: A person who purchases an interest in this
Contract as evidenced by a certificate. Aetna
reserves the right to limit ownership to natural
persons. If more than one Certificate Holder owns
an Account, each Certificate Holder will be a
joint Certificate Holder. Any joint Certificate
Holder must be the spouse of the other joint
Certificate Holder. Joint Certificate Holders have
joint ownership rights and both must authorize
exercising any ownership rights unless Aetna
allows otherwise.
1.09 Code: The Internal Revenue Code of 1986, as it may be
amended from time to time.
1.10 Contract: This agreement between Aetna and the Contract
Holder.
1.11 Contract Holder: The entity to which the Contract is issued.
1.12 Current Value: As of the most recent Valuation Period, the Net
Purchase Payment and any additional amount
deposited pursuant to 3.11 plus any interest added
to the portion allocated to the AG Account; and
plus or minus the investment experience of the
portion allocated to the Funds since deposit; less
all Maintenance Fees deducted, any amounts
surrendered and any amounts applied to an Annuity.
9
1.13 Deposit Period: A calendar week, a calendar month, a calendar
quarter, or any other period of time specified by
Aetna during which Net Purchase Payment(s),
Transfers and Reinvestments are accepted into the
AG Account for one or more Guaranteed Terms. Aetna
reserves the right to extend the Deposit Period.
1.14 Dollar Cost Averaging: A program that permits the Certificate Holder to
systematically transfer amounts from any of the
Funds and the one-year AG Account Guaranteed Term
to any of the Funds. Dollar Cost Averaging is not
available with the Systematic Withdrawal Option
or the Estate Conservation Option.
1.15 Fixed Annuity: An Annuity with payments that do not vary in
amount.
1.16 Fund(s): The open-end management investment companies
(mutual funds) in which the Separate Account
invests.
1.17 General Account: The Account holding the assets of Aetna, other
than those assets held in Aetna's separate
accounts.
1.18 Guaranteed Rates -- Aetna will declare the interest rate(s) applicable
AG Account: to a specific Guaranteed Term at the start of the
Deposit Period for that Guaranteed Term. The
rate(s) are guaranteed by Aetna for the Deposit
Period and the ensuing Guaranteed Term. The
Guaranteed Rates are annual effective yields. That
is, interest is credited daily at a rate that will
produce the Guaranteed Rate over the period of a
year. No Guaranteed Rate will ever be less than
the Minimum Guaranteed Rate shown on Contract
Schedule I.
For Guaranteed Terms of one year or less, one
Guaranteed Rate is credited for the full
Guaranteed Term. For longer Guaranteed Terms, an
initial Guaranteed Rate is credited from the date
of deposit to the end of a specified period within
the Guaranteed Term. There may be different
Guaranteed Rate(s) declared for subsequent
specified time intervals throughout the Guaranteed
Term.
1.19 Guaranteed Term: The period of time for which AG Account Guaranteed
Rates are guaranteed on Net Purchase Payments,
Transfers and Reinvestments made into a current
Deposit Period for the AG Account. Such period
begins on the day following the close of the
Deposit Period and ends on the designated Maturity
Date. Guaranteed Terms are offered at Aetna's
discretion for various lengths of time ranging up
to and including ten years.
During a Deposit Period, Aetna may make available
any number of Guaranteed Terms. The Certificate
Holder may allocate Net Purchase Payments and
Transfers into any or all of the available
Guaranteed Terms.
1.20 Guaranteed Term(s) All AG Account Guaranteed Term(s) with the same
Groups: length of time from the close of the Deposit
Period until the designated Maturity Date.
10
1.21 Maintenance Fee: The Maintenance Fee (see Contract Schedule I) will
be deducted during the Accumulation Period from
the Current Value on each anniversary of the date
the Account is established and upon surrender of
the entire Account.
1.22 Market Value Adjustment An adjustment that may apply to an amount
(MVA): withdrawn or transferred from an AG Account
Guaranteed Term prior to the end of that
Guaranteed Term. The adjustment reflects the
change in the value of the investment due to
changes in interest rates since the date of
deposit and is computed using the formula given in
3.06. The adjustment is expressed as a percentage
of each dollar being withdrawn.
1.23 Matured Term Value: The amount payable on an AG Account Guaranteed
Term's Maturity Date.
1.24 Matured Term Value During the calendar month following an AG Account
Transfer: Maturity Date, the Certificate Holder may notify
Aetna's home office in writing to Transfer or
surrender all or part of the Matured Term Value,
plus interest at the new Guaranteed Rate accrued
thereon, from the AG Account without an MVA. This
provision only applies to the first such written
request received from the Certificate Holder
during this period for any Matured Term Value.
1.25 Maturity Date: The last day of an AG Account Guaranteed Term.
1.26 Net Purchase Payment(s): The Purchase Payment less premium taxes, as
applicable.
1.27 Nonunitized Separate A separate account set up by Aetna under Title 38,
Account: Section 38a-433, of the Connecticut General
Statutes, that holds assets for AG Account Terms.
There are no discrete units for this Account. The
Certificate Holder does not participate in the
investment gain or loss from the assets held in
the Nonunitized Separate Account. Such gain or
loss is borne entirely by Aetna. These assets may
be chargeable with liabilities arising out of any
other business of Aetna.
1.28 Purchase Payment(s): Payment(s) accepted by Aetna at its home office.
Aetna reserves the right to refuse to accept any
Purchase Payment at any time for any reason. No
advance notice will be given to the Contract
Holder or Certificate Holder.
1.29 Reinvestment: Aetna will mail a notice to the Certificate Holder
at least 18 calendar days before a Guaranteed
Term's Maturity Date. This notice will contain the
Terms available during the current Deposit Periods
with their Guaranteed Rate(s) and projected
Matured Term Value. If no specific direction is
given by the Certificate Holder prior to the
Maturity Date, each Matured Term Value will be
reinvested in the current Deposit Period for a
Guaranteed Term of the same duration. If a
Guaranteed Term of the same duration is
unavailable, each Matured Term Value will
automatically be reinvested in the current Deposit
Period for the next shortest Guaranteed Term
available. If no shorter Guaranteed Term is
available, the next longer Guaranteed Term
11
1.29 Reinvestment will be used. Aetna will mail a confirmation
(Cont'd): statement to the Certificate Holder the next
business day after the Maturity Date. This notice
will state the Guaranteed Term and Guaranteed
Rate(s) which will apply to the reinvested
Matured Term Value.
1.30 Separate Account: A separate account that buys and holds shares of
the Fund(s). Income, gains or losses, realized or
unrealized, are credited or charged to the
Separate Account without regard to other income,
gains or losses of Aetna. Aetna owns the assets
held in the Separate Account and is not a trustee
as to such amounts. This Separate Account
generally is not guaranteed and is held at market
value. The assets of the Separate Account, to
the extent of reserves and other contract
liabilities of the Account, shall not be charged
with other Aetna liabilities.
1.31 Surrender Value: The amount payable by Aetna upon the surrender of
any portion of an Account.
1.32 Transfers: The movement of invested amounts among the
available Fund(s) and the AG Account under this
Contract during the Accumulation Period.
1.33 Valuation Period The period of time for which a Fund determines its
(Period): net asset value, usually from 4:15 p.m. Eastern
time each day the New York Stock Exchange is open
until 4:15 p.m. the next such day, or such other
day that one or more of the Funds determines its
net asset value.
1.34 Variable Annuity: An Annuity with payments that vary with the net
investment results of one or more Funds under
the Separate Account.
II. GENERAL PROVISIONS
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2.01 Change of Contract: Only an authorized officer of Aetna may change the
terms of this Contract. Aetna will notify the
Contract Holder in writing at least 30 days before
the effective date of any change. Any change will
not affect the amount or terms of any Annuity
which begins before the change.
Aetna reserves the right to refuse to accept any
Purchase Payment at any time for any reason. This
applies to an initial Purchase Payment to
establish a new Account or to subsequent Purchase
Payments to existing Accounts under the Contract.
No advance notice will be given to the Contract
Holder or Certificate Holder.
Aetna may make any change that affects the AG
Account Market Value Adjustment (3.06) with at
least 30 days' advance written notice to the
Contract Holder and the Certificate Holder. Any
such change shall become effective for any new
Term and will apply to all present and future
Accounts.
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2.01 Change of Contract Aetna reserves the right to change the terms of
(Cont'd): the Systematic Withdrawal Option (3.10) for future
elections and discontinue the availability of this
option after proper notification.
Any change that affects any of the following under
this Contract will not apply to Accounts in
existence before the effective date of the change:
(a) Net Purchase Payment (1.26)
(b) AG Account Guaranteed Rate (1.18)
(c) Net Return Factor(s) -- Separate Account
(3.04)
(d) Current Value (1.12)
(e) Surrender Value (1.31)
(f) Fund(s) Annuity Unit Value -- Separate
Account (4.05)
(g) Annuity options (4.07)
(h) Fixed Annuity Interest Rates (4.01)
(i) Transfers (1.32).
Any change that affects the Annuity options and
the tables for the options may be made:
(a) No earlier than 12 months after the effective
date of this Contract; and
(b) No earlier than 12 months after the effective
date of any prior change.
Any Account established on or after the effective
date of any change will be subject to the change.
If the Contract Holder does not agree to any
change under this provision, no new Accounts may
be established under this Contract. This Contract
may also be changed as deemed necessary by Aetna
to comply with federal or state law.
2.02 Change of Fund(s): The assets of the Separate Account are segregated
by Fund. If the shares of any Fund are no longer
available for investment by the Separate Account
or if in our judgment, further investment in such
shares should become inappropriate in view of the
purpose of the Contract, Aetna may cease to make
such Fund shares available for investment under
the Contract prospectively, or Aetna may
substitute shares of another Fund for shares
already acquired. Aetna may also, from time to
time, add additional Funds. Any elimination,
substitution or addition of Funds will be done in
accordance with applicable state and federal
securities laws. Aetna reserves the right to
substitute shares of another Fund for shares
already acquired without a proxy vote.
2.03 Nonparticipating The Contract Holder, Certificate Holders or
Contract: Beneficiaries will not have a right to share in
the earnings of Aetna.
13
2.04 Payments and Elections: While the Certificate Holder is living, Aetna will
pay the Certificate Holder any Annuity payments as
and when due. After the Certificate Xxxxxx's
death, or at the death of the first Certificate
Holder if the Account is owned jointly, any
Annuity payments required to be made will be paid
in accordance with 4.03. Aetna will determine
other payments and/or elections as of the end of
the Valuation Period in which the request is
received at its home office. Such payments will be
made within seven calendar days of receipt at its
home office of a written claim for payment which
is in good order, except as provided in 3.15.
2.05 State Laws: The Contract and the Certificates comply with the
laws of the state in which they are delivered. Any
surrender, death, or Annuity payments are equal to
or greater than the minimum required by such laws.
Annuity tables for legal reserve valuation shall
be as required by state law. Such tables may be
different from Annuity tables used to determine
Annuity payments.
2.06 Control of Contract: This is a Contract between the Contract Holder and
Aetna. The Contract Holder has title to the
Contract. Contract Holder rights are limited to
accepting or rejecting Contract modifications. The
Certificate Holder has all other rights to amounts
held in his or her Account.
Each Certificate Holder shall own all amounts held
in his or her Account. Each Certificate Holder
may make any choices allowed by this Contract for
his or her Account. Choices made under this
Contract must be in writing. If the Account is
owned jointly, both Certificate Holders must
authorize any Certificate Holder change in
writing. Until receipt of such choices at Aetna's
home office, Aetna may rely on any previous
choices made.
The Contract is not subject to the claims of any
creditors of the Contract Holder or the
Certificate Holder, except to the extent
permitted by law.
The Certificate Holder may assign or transfer his
or her rights under the Contract. Aetna reserves
the right not to accept assignment or transfer to
a nonnatural person. Any assignment or transfer
made must be submitted to Aetna's home office in
writing and will not be effective until accepted
by Aetna.
2.07 Designation of Each Certificate Holder shall name his or her
Beneficiary: Beneficiary. If the Account is owned jointly, both
joint Certificate Holders must agree in writing to
the Beneficiary designated. The Beneficiary may be
changed at any time. Changes to a Beneficiary must
be submitted to Aetna's home office in writing and
will not be effective until accepted by Aetna. If
the Account is owned jointly, at the death of one
joint Certificate Holder, the survivor will be
deemed the Beneficiary; any other Beneficiary on
record will be deemed a contingent Beneficiary.
2.08 Misstatements and If Aetna finds the age of any Annuitant to be
Adjustments: misstated, the correct facts will be used to
adjust payments.
2.09 Incontestability: Aetna cannot cancel this Contract because of any
error of fact.
14
2.10 Grace Period: This Contract will remain in effect even if
Purchase Payments are not continued except as
provided in the Payment of Adjusted Current Value
provision (see 3.17).
2.11 Individual Certificates: Aetna shall issue a certificate to each
Certificate Holder. The certificate will summarize
certain provisions of the Contract. Certificates
are for information only and are not a part of the
Contract.
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
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3.01 Net Purchase Payment: This amount is the actual Purchase Payment less
any premium tax. Aetna reserves the right to pay
premium taxes when due and deduct the amount from
the Current Value when we pay the tax or at a
later date.
The Net Purchase Payment will be credited among:
(a) The current Deposit Period(s) for Guaranteed
Terms under the AG Account; and
(b) The Fund(s) in which the Separate Account
invests.
For each Net Purchase Payment, the Certificate
Holder shall tell Aetna the allocation percentage
to be applied to the current Deposit Period for
each of the available Guaranteed Terms in the AG
Account and/or each Fund. If allocation
instructions are not received along with any
subsequent Net Purchase Payment, the allocation
will be the same as that indicated when the
Contract was purchased. If the same Guaranteed
Term is no longer available, the Net Purchase
Payment will be allocated to the next shortest
Guaranteed Term available in the current Deposit
Period. If no shorter Guaranteed Term is
available, the next longer Guaranteed Term will be
used.
3.02 Certificate Aetna will maintain an Account for each
Holder's Account: Certificate Holder.
Aetna will declare from time to time the
acceptability and the minimum amount for
additional Purchase Payments. Each Account will be
subject to the Terms and Conditions of the
Contract in effect at the time the first Purchase
Payment for such Account is applied to the
Contract except for changes made to comply with
federal or state law.
3.03 Fund(s) Record Units -- The portion of the Net Purchase Payment(s)
Separate Account: applied to each Fund under the Separate Account
will determine the number of Fund record units for
that Fund. This number is equal to the portion of
the Net Purchase Payment(s) applied to each Fund
divided by the Fund record unit value (see 3.05)
for the Valuation Period in which the Purchase
Payment is received in good order at Aetna's home
office.
15
3.04 Net Return Factor(s) -- The net return factor(s) are used to compute
Separate Account: all Separate Account record units for any Fund.
The net return factor(s) for each Fund is equal to
1.0000000 plus the net return rate.
The net return rate is equal to:
(a) The value of the shares of the Fund held by
the Separate Account at the end of the
Valuation Period; minus
(b) The value of the shares of the Fund held by
the Separate Account at the start of the
Valuation Period; plus or minus
(c) Taxes (or reserves for taxes) on the Separate
Account (if any); divided by
(d) The total value of the Fund(s) record units
and Fund(s) annuity units of the Separate
Account at the start of the Valuation Period;
minus
(e) A daily Separate Account charge at an annual
rate as shown on Contract Schedule I for
mortality and expense risks, which may include
profit; and a daily administrative charge.
A net return rate may be more or less than 0%. The
value of a share of the Fund is equal to the net
assets of the Fund divided by the number of shares
outstanding.
3.05 Fund Record Unit A Fund record unit value is computed by
Value -- Separate multiplying the net return factors for the current
Account: Valuation Period by the Fund record unit value for
the previous Period. The dollar value of Fund
record units, Separate Account assets, and
Variable Annuity payments may go up or down due to
investment gain or loss.
3.06 Market Value An MVA will apply to any withdrawal from the AG
Adjustment: Account before the end of a Guaranteed Term when
the withdrawal is:
(a) A Transfer; except for Transfers from the
one-year AG Account Guaranteed Account under
the Dollar Cost Averaging program or, as
specified in 1.24 Matured Term Value Transfer;
(b) A full or partial surrender (including a 10%
free withdrawal under 3.14); except for a
partial withdrawal under the Systematic
Withdrawal Option; or
(c) Due to election of an Annuity (see 4.07).
Full and partial surrenders and Transfers made
within six months after the date of the
Annuitant's death will be the greater of:
(a) The aggregate MVA amount which is the sum of
all market value adjusted amounts
calculated due to a withdrawal of amounts.
This total may be greater or less than the
Current Value of those amounts; or
(b) The applicable portion of the Current Value in
the AG Account.
16
3.06 Market Value After the six-month period, the surrender or
Adjustment (Cont'd): Transfer will be the aggregate MVA amount, which
may be greater or less than the Current Value of
those amounts.
The greater of the aggregate MVA amount or the
applicable portion of the Current Value applies to
amounts withdrawn from the AG Account on account
of an election of Annuity options 2 or 3 (see
4.07).
Market value adjusted amounts will be equal to the
amount withdrawn multiplied by the following
ratio:
x
---
365
(1 + i)
-------------
x
---
365
(1 + j)
Where:
i is the Deposit Period Yield
j is the Current Yield
x is the number of days remaining,
(computed from Wednesday of the week
of withdrawal) in the Guaranteed Term.
The Deposit Period Yield will be determined as
follows:
(a) At the close of the last business day of each
week of the Deposit Period, a yield will be
computed as the average of the yields on that
day of U.S. Treasury Notes which mature in the
last three months of the Guaranteed Term.
(b) The Deposit Period Yield is the average of
those yields for the Deposit Period. If
withdrawal is made before the close of the
Deposit Period, it is the average of those
yields on each week preceding withdrawal.
The Current Yield is the average of the yields on
the last business day of the week preceding
withdrawal on the same U.S. Treasury Notes
included in the Deposit Period Yield.
In the event that no U.S. Treasury Notes which
mature in the last three months of the Guaranteed
Term exist, Aetna reserves the right to use the
U.S. Treasury Notes that mature in the following
quarter.
3.07 Transfer of Current Before an Annuity option is elected, all or any
Value from the Funds portion of the Adjusted Current Value of the
or AG Account: Certificate Holder's Account may be transferred
from any Fund or Guaranteed Term of the AG
Account:
(a) To any other Fund; or
(b) To any Guaranteed Term of the AG Account
available in the current Deposit Period.
17
3.07 Transfer of Current Transfer requests can be submitted as a percentage
Value from the Funds or as a dollar amount. Aetna may establish a
or AG Account (Cont'd): minimum transfer amount. Within a Guaranteed Term
Group, the amount to be surrendered or transferred
will be withdrawn first from the oldest Deposit
Period, then from the next oldest, and so on until
the amount requested is satisfied.
The Certificate Holder may make an unlimited
number of Transfers during the Accumulation
Period. The number of free Transfers allowed by
Aetna is shown on Contract Schedule I. Additional
Transfers may be subject to a Transfer fee as
shown on Contract Schedule I.
Amounts transferred from the AG Account under the
Dollar Cost Averaging program, or amounts
transferred as a Matured Term Value on or within
one calendar month of a Term's Maturity Date do
not count against the annual Transfer limit.
Amounts applied to Guaranteed Terms of the AG
Account may not be transferred to the Funds or to
another Guaranteed Term during the Deposit Period
or for 90 days after the close of the Deposit
Period except for (1) Matured Term Value(s) during
the calendar month following the Term's Maturity
Date; (2) amounts used as a premium for an Annuity
option; (3) amounts transferred from the one-year
AG Account Guaranteed Term under the Dollar Cost
Averaging program; and (4) amounts distributed
under the Systematic Withdrawal Option.
3.08 Notice to the The Certificate Holder will receive quarterly
Certificate Holder: statements from Aetna of:
(a) The value of any amounts held in:
(1) The AG Account; and
(2) The Fund(s) under the Separate Account.
(b) The number of any Fund(s) record units; and
(c) The Fund(s) record unit value.
Such number or values will be as of a specific
date no more than 60 days before the date of the
notice.
3.09 Loans: Loans are not available under this Contract.
3.10 Systematic Withdrawal A distribution option under which a portion of
Option (SWO): the Account's Current Value will automatically be
surrendered and distributed each year. SWO
payments will be calculated on the Account's full
Current Value. The distributed amount is withdrawn
pro rata from each investment option under the
Account. A Surrender Fee will not be deducted from
any portion of the Current Value which is paid as
a distribution under SWO.
Certificate Holders should consult their tax
adviser prior to requesting this distribution
option. Aetna will not be responsible for any
adverse tax consequences due to receiving SWO
payments.
18
3.10 Systematic Withdrawal (a) Amount of Distribution: The Certificate Holder
Option (SWO) may elect one of the three payment methods
(Cont'd): described below.
(1) Specified Payment: Payments of a
designated dollar amount. The annual
amount may not be greater than the
percentage of the Current Value at time of
election as shown on Contract Schedule I.
This annual dollar amount will remain
constant. At its discretion, Aetna may
require a minimum initial payment amount;
(2) Specified Period: Payments which are made
over a period of time which must be at
least 10 years. The annual amount paid each
year is calculated by dividing the Current
Value as of December 31 of the prior year
by the number of payment years remaining;
or
(3) Specified Percentage: Payment of a
designated percentage which cannot be
greater than the percentage of the Current
Value at the time of election as shown on
Contract Schedule I. The percentage may be
changed by written request. Aetna reserves
the right to limit the number of times the
percentage may be changed. The annual
amount is calculated by multiplying the
Current Value as of December 31 of the
year prior to the payment by the
designated percentage.
(b) Minimum Initial Current Value: At its discretion,
Aetna may require a minimum initial Current Value
for election of this option. If after election of
this option the Current Value is insufficient to
make a scheduled SWO payment, Aetna will distribute
the entire Account balance.
(c) Date of Distribution: The Certificate Holder shall
specify the initial distribution date. The earliest
date for distribution is the date on which the
Certificate Holder attains age 59 1/2. As elected
by the Certificate Holder, SWO payments will be
made on a monthly, quarterly, semi-annual or annual
basis. If SWO payments are made more frequently
than annually, the designated annual amount is
divided by the number of payments due each calendar
year. Subsequent distributions will be made on the
15th of any month or such other date Aetna may
designate or allow.
(d) SWO payments will cease upon the Certificate
Holder's or Xxxxxxxxx's death. A Beneficiary,
however, may elect to continue SWO as provided
in 3.12.
(e) Election and Revocation: SWO may be elected by
submitting a completed and signed election form to
Aetna's home office. Once elected, this option may
be revoked by the Certificate Holder or spousal
Beneficiary, if elected after the Certificate
Holder's death, by submitting a written request to
Aetna at its home office. Any revocation will apply
only to amounts not yet paid. SWO may be elected
only once by the Certificate Holder or by the
spousal Beneficiary.
19
3.11 Death Benefit Amount: If the Certificate Holder or Annuitant dies before
Annuity payments start, the Beneficiary is
entitled to a death benefit under the Account. If
the Account is owned jointly, the death benefit is
paid at the death of the first joint Certificate
Holder to die. The claim date is the date when
proof of death and the Beneficiary's claim are
received in good order at Aetna's home office. The
amount of the death benefit is determined as
follows:
(a) Death of Annuitant when the Certificate
Holder is the Annuitant: The guaranteed death
benefit is the greatest of:
(1) The sum of all Purchase Payment(s) made to
the Account (as of the date of death)
minus the sum of all amounts surrendered,
applied to an Annuity, or deducted from
the Account;
(2) The highest step up value, as of the date
of death, prior to the Annuitant's 75th
birthday. A step-up value is determined on
each anniversary of the Effective Date.
Each step-up value is calculated as the
Account's Current Value on the Effective
Date anniversary, increased by the amount
of any Purchase Payment(s) made, and
decreased by the sum of all amounts
surrendered, deducted, and/or applied to
an Annuity option since the Effective Date
anniversary.
(3) The Account's Current Value as of the date
of death.
The excess, if any, of the guaranteed death
benefit value over the Account's Current
Value is determined as of the date of death.
Any excess amount will be deposited to the
Account and allocated to Aetna Variable
Encore Fund as of the claim date. The Current
Value on the claim date plus any excess
amount deposited becomes the Account's
Current Value.
(b) Death of the Certificate Holder if the
Certificate Holder is not the Annuitant: The
death benefit amount is the Account's Adjusted
Current Value on the claim date. A Surrender
Fee may apply to any full or partial surrender
(see 3.14 and Contract Schedule I).
(c) Death of spousal Beneficiary who continued the
Account: The death benefit amount equals the
Account's Adjusted Current Value on the claim
date, less any applicable Surrender Fee on
Purchase Payments made since the death of the
Certificate Holder or Annuitant.
3.12 Death Benefit Options Prior to any election, or until amounts must
Available to be otherwise distributed under this section, the
Beneficiary: Current Value will be retained in the Account. The
Beneficiary has the right to allocate or
reallocate any amount to any of the available
investment options (subject to an MVA if
applicable). The following options are available
to the Beneficiary:
(a) When the Certificate Holder is the Annuitant
if the the Annuitant dies (or when the
Certificate Holder is a nonnatural person if
the Annuitant dies):
20
3.12 Death Benefit Options (1) If the Beneficiary is the surviving
Available to spouse, the spousal Beneficiary will be
Beneficiary (Cont'd): the successor Certificate Holder and may
exercise all Certificate Holder rights
under the Contract and continue in the
Accumulation Period, or may elect (i) or
(ii) below.
Under the Code, distributions from the
Account are not required until the spousal
Beneficiary's death. The spousal
Beneficiary may elect to:
(i) Apply some or all of the Adjusted
Current Value to an Annuity option
(see 4.07);
(ii) Receive, at any time, a lump sum
payment equal to the Adjusted Current
Value of the Account.
(2) If the Beneficiary is other than the
surviving spouse, options (i) or (ii) above
apply. Any portion of the Adjusted Current
Value not applied to an Annuity option
within one year of the death must be
distributed within five years of the date of
death.
(3) If no Beneficiary exists, a lump sum
payment equal to the Adjusted Current Value
must be made to the Annuitant's estate
within five years of the date of death.
(4) If the Beneficiary is an entity, a lump sum
payment equal to the Adjusted Current Value
must be made within five years of the date
of death.
(b) When the Certificate Holder is not the Annuitant
when the Certificate Holder dies:
(1) If the Beneficiary is the Certificate Holder's
surviving spouse, the spousal Beneficiary will
be the successor Certificate Holder and may
exercise all Certificate Holder rights under
the Contract and continue in the Accumulation
Period, or may elect (i) or (ii), below. Under
the Code, distributions from the Account are
not required until the spousal Beneficiary's
death. The spousal Beneficiary may elect to:
(i) Apply some or all of the Adjusted Current
Value to Annuity option 2 or 3 (see 4.07);
(ii) Receive, at any time, a lump sum payment
equal to the Surrender Value.
(2) If the Beneficiary is other than the
Certificate Holder's surviving spouse, options
(i) or (ii) under (1) above apply. Any portion
of the death benefit not applied to an Annuity
option within one year of the Certificate
Holder's death must be distributed within
five years of the date of death.
21
3.12 Death Benefit Options (3) If no Beneficiary exists, a lump sum
Available to Beneficiary payment equal to the Surrender Value must
(Cont'd): be made to the Certificate Holder's estate
within five years of the date of death.
(4) If the Beneficiary is an entity, a lump
sum payment equal to the Surrender Value
must be made within five years of the date
of death.
(c) When the Certificate Holder is a natural
person and not the Annuitant, when the
Annuitant dies, the Beneficiary (or the
Certificate Holder if no Beneficiary exists)
may elect to:
(i) Apply all or some of the Adjusted Current
Value to an Annuity option within 60 days
of the date of death; or
(ii) Receive a lump sum payment equal to the
Adjusted Current Value.
3.13 Liquidation of All or any portion of the Account's Current Value
Surrender Value: may be surrendered at any time. Surrender requests
can be submitted as a percentage of the Account
value or as a specific dollar amount. Net Purchase
Payment amounts are withdrawn first, and then the
excess value, if any. For any partial surrender,
amounts are withdrawn on a pro rata basis from the
Fund(s) and/or the Guaranteed Term(s) Groups of
the AG Account in which the Current Value is
invested. Within a Guaranteed Term Group, the
amount to be surrendered or transferred will be
withdrawn first from the oldest Deposit Period,
then from the next oldest, and so on until the
amount requested is satisfied.
After deduction of the Maintenance Fee, if
applicable, the surrendered amount shall be
reduced by a Surrender Fee, if applicable. An MVA
may apply to amounts surrendered from the AG
Account.
3.14 Surrender Fee: The Surrender Fee only applies to the Net Purchase
Payment(s) portion surrendered and varies
according to the elapsed time since deposit (see
Contract Schedule I). Net Purchase Payment amounts
are withdrawn in the same order they were applied.
No Surrender Fee is deducted from any portion of
the Current Value which is paid:
(a) To a Beneficiary due to the Annuitant's death
before Xxxxxxx payments start, up to a maximum
of the aggregate Net Purchase Payment(s) minus
the total of all partial surrenders, amounts
applied to an Annuity and deductions made prior
to the Annuitant's date of death;
(b) As a premium for an Annuity option (see
4.07);
(c) As a distribution under the SWO provision
(see 3.10);
22
3.14 Surrender Fee (d) At least 12 months after the date of the
(Cont'd): first Purchase Payment to the Account, in an
amount equal to or less than 10% of the
Current Value. This applies to the first
surrender request, partial or full, in a
calendar year. The Current Value is
calculated as of the date the surrender
request is received in good order at Aetna's
home office. This waiver is not available to
the Certificate Holder while SWO is in
effect;
(e) For a full surrender of the Account where the
Current Value of the Account is $2,500 or
less and no surrenders have been taken from
the Account within the prior 12 months;
(f) By Aetna under 3.16; or
(g) If the Annuitant has spent at least 45
consecutive days in a licensed nursing care
facility and each of the following conditions
are met:
(1) more than one calendar year has elapsed
since the date the certificate was
issued; and
(2) the surrender is requested within 3 years
of admission to a licensed nursing care
facility.
This waiver does not apply if
the Annuitant was in a nursing care
facility at the time the certificate was
issued.
3.15 Payment of Under certain emergency conditions, Aetna may
Surrender Value: defer payment:
(a) For a period of up to 6 months (unless not
allowed by state law); or
(b) As provided by federal law.
3.16 Payment of Adjusted Current Value:
Upon 90 days' written notice to the Certificate
Holder, Aetna will terminate any Account if the
Current Value becomes less than $2,500
immediately following any partial surrender.
Aetna does not intend to exercise this right in
cases where an Account Current Value is reduced
to $2,500 or less solely due to investment
performance. A Surrender Fee will not be deducted
from the Adjusted Current Value.
IV. ANNUITY PROVISIONS
--------------------------------------------------------------------------------
4.01 Choices: The Certificate Holder may tell Aetna to apply any
portion of the Adjusted Current Value (minus any
premium tax, if applicable,) to any Annuity option
(see 4.07). The first Annuity payment may not be
earlier than one calendar year after the initial
Purchase Payment nor later than the later of:
(a) The first day of the month following the
Annuitant's 85th birthday; or
(b) The tenth anniversary of the last Purchase
Payment. In lieu of the election of an
Annuity, the Certificate Holder may tell
Aetna to make a lump sum payment.
23
4.01 Choices When an Annuity option is chosen, Aetna must also
(Cont'd): be told if payments are to be made other than
monthly and whether to pay:
(a) A Fixed Annuity using the General Account;
(b) A Variable Annuity using any of the Fund(s)
available under this Contract for Annuity
purposes; or
(c) A combination of (a) and (b).
If a Fixed Annuity is chosen, the Annuity purchase
rate for the option chosen reflects the Minimum
Guaranteed Interest Rate (see Contract Schedule
II), but may reflect higher interest rates. If a
Variable Annuity is chosen, the initial Annuity
payment for the option chosen reflects the assumed
annual return rate elected. (see Contract Schedule
II).
4.02 Terms of Annuity (a) When payments start, the age of the Annuitant
Options: plus the number of years for which payments
are guaranteed must not exceed 95.
(b) An Annuity option may not be elected if the
first payment would be less than $50 or if the
total payments in a year would be less than
$250 (less if required by state law). Aetna
reserves the right to increase the minimum
first Annuity payment amount and the annual
minimum Annuity payment amount based upon
increases reflected in the Consumer Price
Index-Urban, (CPI-U) since July 1, 1993.
(c) If a Fixed Annuity is chosen and a larger
payment would result from applying the
Surrender Value to a current Aetna single
premium immediate Annuity, Aetna will make the
larger payment.
(d) For purposes of calculating the guaranteed
first payment of a Variable Annuity or the
payments for a Fixed Annuity, the Annuitant's
and second Annuitant's adjusted age will be
used. The Annuitant's and second Xxxxxxxxx's
adjusted age is his or her age as of the
birthday closest to the Annuity commencement
date reduced by one year for Annuity
commencement dates occurring during the period
of time from July 1, 1993 through December 31,
1999. The Annuitant's and second Xxxxxxxxx's
age will be reduced by two years for Annuity
commencement dates occurring during the period
of time from January 1, 2000 through December
31, 2009. The Annuitant's and second
Annuitant's age will be reduced by one
additional year for Annuity commencement
dates occurring in each succeeding decade.
The Annuity purchase rates for options 2 and 3
are based on mortality from 1983 Table a.
24
4.02 Terms of Annuity (e) Assumed Annual Net Return Rate is the
Options (Cont'd): interest rate used to determine the
amount of the first Annuity payment under
a Variable Annuity as shown on Contract
Schedule II. The Separate Account must
earn this rate plus enough to cover the
mortality and expense risks charges
(which may include profit) and
administrative charges if future Variable
Annuity Payments are to remain level,
(see Annuity return factor under Variable
Annuity Assumed Annual Net Return Rate
on Contract Schedule II).
(f) Once elected, Annuity payments cannot be
commuted to a lump sum except for Variable
Annuity payments under option 1 (see
4.07). The life expectancy of the
Annuitant or the Annuitant and second
Annuitant shall be irrevocable upon the
election of an Annuity option.
4.03 Death of Annuitant/ (a) Certificate Holder is Annuitant: When
Beneficiary: the Certificate Holder is the Annuitant
and the Annuitant dies under option 1 or
2, or both the Annuitant and the second
Annuitant die under option 3(d), the
present value of any remaining guaranteed
payments will be paid in one sum to the
Beneficiary, or upon election by the
Beneficiary, any remaining payments will
continue to the Beneficiary. If option 3
has been elected and the Certificate
Holder dies, the remaining payments will
continue to the successor payee. If no
successor payee has been designated, the
Beneficiary will be treated as the
successor payee. If the Account has joint
Certificate Holder's, the surviving joint
Certificate Holder will be deemed the
successor payee.
(b) Certificate Holder is Not Annuitant: When
the Certificate Holder is not the
Annuitant and the Certificate Holder
dies, the remaining payments will
continue to the successor payee. If no
successor payee has been designated, the
Beneficiary will be treated as the
successor payee. If the Account has joint
Certificate Holder's, the surviving joint
Certificate Holder will be deemed the
successor payee.
If the Annuitant dies under option 1 or
2, or both the Annuitant and the second
Annuitant die under option 3(d), the
present value of any remaining guaranteed
payments will be paid in one sum to the
Beneficiary, or upon the election by the
Beneficiary, any remaining payments will
continue to the Beneficiary. If option 3
has been elected, and the Annuitant dies,
the remaining payments will continue to
the Certificate Holder.
(c) No Beneficiary Named/Surviving: If there
is no Beneficiary, the present value of
any remaining payments will be paid in
one sum to the Certificate Holder, or if
the Certificate Holder is not living,
then to the Certificate Holder's estate.
25
4.03 Death of Annuitant/ (d) If the Beneficiary or the successor payee
Beneficiary (Cont'd): dies while receiving Annuity payments,
the present value of any remaining
guaranteed payments will be paid in one
sum to the successor Beneficiary/payee,
or upon election by the successor
Beneficiary/payee, any remaining payments
will continue to the successor
Beneficiary/payee. If no successor
Beneficiary/payee has been designated,
the present value of any remaining
guaranteed payments will be paid in one
sum to the Beneficiary's/payee's estate.
(e) The present value will be determined as
of the Valuation Period in which proof of
death acceptable to Aetna and a request
for payment is received at Aetna's home
office. The interest rate used to
determine the first payment will be used
to calculate the present value.
4.04 Fund(s) Annuity Units -- The number of each Fund's Annuity Units is
Separate Account: based on the amount of the first Variable
Annuity payment which is equal to:
(a) The portion of the Current Value applied
to pay a Variable Annuity (minus any
premium tax); divided by
(b) 1,000; multiplied by
(c) The payment rate for the option chosen.
Such amount, or portion, of the variable
payment will be divided by the appropriate
Fund Annuity unit value (see 4.05) on the
tenth Valuation Period before the due date of
the first payment to determine the number of
each Fund Annuity units. The number of each
Fund Annuity units remains fixed. Each future
payment is equal to the sum of the products
of each Fund Annuity unit value multiplied by
the appropriate number of units. The Fund
Annuity unit value on the tenth Valuation
Period prior to the due date of the payment
is used.
4.05 Fund(s) Annuity Unit
Value -- Separate Account: For any Valuation Period, a Fund Annuity unit
value is equal to: Account:
(a) The value for the previous Period;
multiplied by
(b) The Annuity net return factor(s) (see
4.06 below) for the Period; multiplied by
(c) A factor to reflect the assumed annual
net return rate (see Contract Schedule
II).
The dollar value of a Fund Annuity unit
values and Annuity payments may go up or down
due to investment gain or loss.
4.06 Annuity Net Return The Annuity net return factor(s) are used to
Factor(s) -- Separate compute all Separate Account Annuity Payments
Account: for any Fund.
The Annuity net return factor(s) for each
Fund is equal to 1.0000000 plus the net
return rate.
The net return rate is equal to:
(a) The value of the shares of the Fund held
by the Separate Account at the end of a
Valuation Period; minus
26
4.06 Annuity Net Return (b) The value of the shares of the Fund held
Factor(s) -- Separate by the Separate Account at the start of
Account (Cont'd): the Valuation Period; plus or minus
(c) Taxes (or reserves for taxes) on the
Separate Account (if any); divided by
(d) The total value of the Fund(s) record
units and Fund(s) Annuity units of the
Separate Account at the start of the
Valuation Period; minus
(e) A daily charge for Annuity mortality and
expense risks, which may include profit,
and a daily administrative charge (at
the annual rate as shown on Contract
Schedule II).
A net return rate may be more or less than
0%.
The value of a share of the Fund is equal to
the net assets of the Fund divided by the
number of shares outstanding.
Payments shall not be changed due to changes
in the mortality or expense results or
administrative charges.
4.07 Annuity Options: Option 1 -- Payments for a Stated Period of
Time -- An Annuity will be paid for the
number of years chosen. The number of years
must be at least 5 and not more than 30.
If payments for this option are made under a
Variable Annuity, the present value of any
remaining payments may be withdrawn at any
time. If a withdrawal is requested within 3
years after the start of payments, it will be
treated as a surrender and any applicable
Surrender Fee will be applied (see 3.14).
If a nonspouse Beneficiary elects this option
at the death of the Certificate Holder, the
period selected may not extend beyond the
Beneficiary's life expectancy.
Option 2 -- Life Income -- An Annuity will be
paid for the life of the Annuitant. If also
chosen, Aetna will guarantee payments for 60,
120, 180, or 240 months.
Option 3 -- Life Income Based upon the Lives
of Two Annuitants -- An Annuity will be paid
during the lives of the Annuitant and a
second Annuitant. Payments will continue
until both Annuitants have died. When this
option is chosen, a choice must be made of:
(a) 100% of the payment to continue after the
first death;
(b) 66 2/3% of the payment to continue after
the first death;
(c) 50% of the payment to continue after the
first death;
(d) Payments for a minimum of 120 months with
100% of the payment to continue after the
first death; or
(e) 100% of the payment to continue at the
death of the second Annuitant and 50% of
the payment to continue at the death of
the Annuitant.
Other Options -- Aetna may make other options
available as allowed by the laws of the state
in which this Contract and the Certificate is
delivered.
27
OPTION 1
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
--------------------------------------------------------------------------------
3 3.00% $ 28.99 $ 86.76 $ 172.88 $ 343.23
4 3.00% 22.06 66.02 131.56 261.19
5 3.00% 17.91 53.59 106.78 211.99
6 3.00% 15.14 45.30 90.27 179.22
7 3.00% 13.16 39.39 78.49 155.83
8 3.00% 11.68 34.96 69.66 138.31
9 3.00% 10.53 31.52 62.81 124.69
10 3.00% 9.61 28.77 57.33 113.82
11 3.00% 8.86 26.52 52.85 104.93
12 3.00% 8.24 24.65 49.13 97.54
13 3.00% 7.71 23.08 45.98 91.29
14 3.00% 7.26 21.73 43.29 85.95
15 3.00% 6.87 20.56 40.96 81.33
16 3.00% 6.53 19.54 38.93 77.29
17 3.00% 6.23 18.64 37.14 73.74
18 3.00% 5.96 17.84 35.56 70.59
19 3.00% 5.73 17.13 34.14 67.78
20 3.00% 5.51 16.50 32.87 65.26
21 3.00% 5.32 15.92 31.72 62.98
22 3.00% 5.15 15.40 30.68 60.92
23 3.00% 4.99 14.92 29.74 59.04
24 3.00% 4.84 14.49 28.88 57.33
25 3.00% 4.71 14.09 28.08 55.76
26 3.00% 4.59 13.73 27.36 54.31
27 3.00% 4.47 13.39 26.68 52.97
28 3.00% 4.37 13.08 26.06 51.74
29 3.00% 4.27 12.79 25.49 50.60
30 3.00% 4.18 12.52 24.95 49.53
28
OPTION 2
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Months
Adjusted
Age of None 60 120 180 240
Annuitant
--------------------------------------------------------------------------------
50 $ 4.05 $ 4.05 $ 4.03 $ 3.99 $ 3.93
51 4.12 4.11 4.09 4.05 3.99
52 4.19 4.19 4.16 4.11 4.04
53 4.27 4.26 4.23 4.18 4.10
54 4.35 4.34 4.31 4.25 4.16
55 4.44 4.42 4.39 4.32 4.22
56 4.53 4.51 4.47 4.40 4.29
57 4.62 4.61 4.56 4.48 4.35
58 4.72 4.71 4.65 4.56 4.42
59 4.83 4.81 4.75 4.64 4.49
60 4.95 4.93 4.86 4.73 4.55
61 5.07 5.05 4.97 4.83 4.62
62 5.20 5.17 5.08 4.92 4.69
63 5.34 5.31 5.20 5.02 4.76
64 5.49 5.45 5.33 5.12 4.83
65 5.65 5.61 5.47 5.22 4.89
66 5.82 5.77 5.61 5.33 4.96
67 6.01 5.94 5.75 5.44 5.02
68 6.20 6.13 5.91 5.54 5.08
69 6.41 6.33 6.07 5.65 5.14
70 6.64 6.54 6.23 5.76 5.19
71 6.88 6.76 6.41 5.86 5.24
72 7.14 7.00 6.59 5.97 5.28
73 7.43 7.26 6.77 6.06 5.32
74 7.73 7.53 6.96 6.16 5.35
75 8.06 7.82 7.14 6.25 5.38
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
29
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Adjusted Ages
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
----------------------------------------------------------------------------------------------
55 50 $ 3.69 $ 4.05 $ 4.27 $ 3.69 $ 4.03
55 55 3.88 4.25 4.47 3.87 4.14
55 60 3.99 4.44 4.71 3.98 4.42
60 55 3.99 4.44 4.71 3.98 4.42
60 60 4.24 4.71 4.99 4.23 4.57
60 65 4.38 4.97 5.32 4.38 4.93
65 60 4.38 4.97 5.32 4.38 4.93
65 65 4.72 5.33 5.70 4.71 5.14
65 70 4.93 5.68 6.15 4.91 5.66
70 65 4.93 5.68 6.15 4.91 5.66
70 70 5.40 6.21 6.70 5.36 5.96
70 75 5.69 6.68 7.32 5.62 6.67
75 70 5.69 6.68 7.32 5.62 6.67
75 75 6.37 7.45 8.15 6.23 7.12
75 80 6.78 8.11 8.99 6.54 8.13
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
30
OPTION 1
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
--------------------------------------------------------------------------------
3 3.50% $ 29.19 $ 87.33 $ 173.91 $ 344.86
4 3.50% 22.27 66.61 132.65 263.04
5 3.50% 18.12 54.19 107.92 213.99
6 3.50% 15.35 45.92 91.44 181.32
7 3.50% 13.38 40.01 79.69 158.01
8 3.50% 11.90 35.59 70.88 140.56
9 3.50% 10.75 32.16 64.05 127.00
10 3.50% 9.83 29.42 58.59 116.18
11 3.50% 9.09 27.18 54.13 107.34
12 3.50% 8.46 25.32 50.42 99.98
13 3.50% 7.94 23.75 47.29 93.78
14 3.50% 7.49 22.40 44.62 88.47
15 3.50% 7.10 21.24 42.31 83.89
16 3.50% 6.76 20.23 40.29 79.89
17 3.50% 6.47 19.34 38.51 76.37
18 3.50% 6.20 18.55 36.94 73.25
19 3.50% 5.97 17.85 35.54 70.47
20 3.50% 5.75 17.22 34.28 67.98
21 3.50% 5.56 16.65 33.15 65.74
22 3.50% 5.39 16.13 32.13 63.70
23 3.50% 5.24 15.66 31.19 61.85
24 3.50% 5.09 15.24 30.34 60.17
25 3.50% 4.96 14.85 29.56 58.62
26 3.50% 4.84 14.49 28.85 57.20
27 3.50% 4.73 14.15 28.19 55.90
28 3.50% 4.63 13.85 27.58 54.69
29 3.50% 4.53 13.57 27.02 53.57
30 3.50% 4.45 13.30 26.49 52.53
31
OPTION 1
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
--------------------------------------------------------------------------------
3 5.00% $ 29.80 $ 89.04 $ 176.99 $ 349.72
4 5.00% 22.89 68.38 135.93 268.58
5 5.00% 18.74 56.00 111.33 219.98
6 5.00% 15.99 47.77 94.96 187.64
7 5.00% 14.02 41.90 83.30 164.59
8 5.00% 12.56 37.52 74.58 147.35
9 5.00% 11.42 34.11 67.81 133.99
10 5.00% 10.51 31.40 62.42 123.34
11 5.00% 9.77 29.19 58.03 114.66
12 5.00% 9.16 27.36 54.38 107.45
13 5.00% 8.64 25.81 51.31 101.39
14 5.00% 8.20 24.50 48.69 96.21
15 5.00% 7.82 23.36 46.44 91.75
16 5.00% 7.49 22.37 44.47 87.88
17 5.00% 7.20 21.51 42.75 84.88
18 5.00% 6.94 20.74 41.23 81.47
19 5.00% 6.71 20.06 39.88 78.80
20 5.00% 6.51 19.46 38.68 76.42
21 5.00% 6.33 18.91 37.59 74.28
22 5.00% 6.17 18.42 36.62 72.35
23 5.00% 6.02 17.98 35.73 70.61
24 5.00% 5.88 17.57 34.93 69.02
25 5.00% 5.76 17.20 34.20 67.57
26 5.00% 5.65 16.87 33.53 66.25
27 5.00% 5.54 16.56 32.92 65.04
28 5.00% 5.45 16.28 32.35 63.93
29 5.00% 5.36 16.01 31.83 62.90
30 5.00% 5.28 15.77 31.35 61.95
32
OPTION 2
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Payments Guaranteed for a Stated Period of Months
Adjusted
Age of None 60 120 180 240
Annuitant
--------------------------------------------------------------------------------
50 $ 4.34 $ 4.34 $ 4.31 $ 4.27 $ 4.22
51 4.41 4.40 4.38 4.33 4.27
52 4.48 4.47 4.45 4.40 4.32
53 4.56 4.55 4.52 4.46 4.38
54 4.64 4.63 4.59 4.53 4.44
55 4.72 4.71 4.67 4.60 4.50
56 4.81 4.80 4.75 4.67 4.56
57 4.91 4.89 4.84 4.75 4.62
58 5.01 4.99 4.93 4.83 4.69
59 5.12 5.10 5.03 4.92 4.75
60 5.23 5.21 5.13 5.00 4.82
61 5.36 5.33 5.24 5.09 4.88
62 5.49 5.45 5.35 5.19 4.95
63 5.63 5.59 5.47 5.28 5.02
64 5.78 5.73 5.60 5.38 5.08
65 5.94 5.89 5.73 5.48 5.15
66 6.11 6.05 5.87 5.58 5.21
67 6.29 6.22 6.02 5.69 5.27
68 6.49 6.41 6.17 5.79 5.33
69 6.70 6.60 6.33 5.90 5.38
70 6.92 6.81 6.49 6.00 5.43
71 7.17 7.04 6.66 6.10 5.48
72 7.43 7.27 6.84 6.20 5.52
73 7.71 7.53 7.02 6.30 5.55
74 8.02 7.70 7.20 6.39 5.59
75 8.35 8.08 7.38 6.48 5.62
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
33
OPTION 2
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Payments Guaranteed for a Stated Period of Months
Adjusted
Age of None 60 120 180 240
Annuitant
--------------------------------------------------------------------------------
50 $ 5.26 $ 5.25 $ 5.22 $ 5.17 $ 5.11
51 5.33 5.32 5.28 5.23 5.15
52 5.40 5.38 5.34 5.29 5.20
53 5.47 5.45 5.41 5.35 5.26
54 5.54 5.53 5.48 5.41 5.31
55 5.63 5.61 5.56 5.47 5.36
56 5.71 5.69 5.63 5.54 5.42
57 5.80 5.78 5.72 5.61 5.47
58 5.90 5.88 5.81 5.69 5.53
59 6.01 5.98 5.90 5.77 5.59
60 6.12 6.09 6.00 5.85 5.65
61 6.24 6.21 6.10 6.93 5.71
62 6.37 6.33 6.21 6.02 5.77
63 6.51 6.46 6.33 6.11 5.83
64 6.66 6.60 6.45 6.20 5.89
65 6.82 6.75 6.57 6.30 5.95
66 6.99 6.91 6.71 6.39 6.01
67 7.17 7.08 6.85 6.49 6.06
68 7.36 7.27 6.99 6.59 6.12
69 7.57 7.46 7.15 6.69 6.17
70 7.80 7.67 7.30 6.78 6.21
71 8.05 7.89 7.47 6.88 6.25
72 8.31 8.13 7.64 6.97 6.29
73 8.59 8.38 7.81 7.06 6.33
74 8.90 8.64 7.99 7.15 6.36
75 9.23 8.93 8.16 7.23 6.38
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
34
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Adjusted Ages
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
----------------------------------------------------------------------------------------------
55 50 $ 3.97 $ 4.35 $ 4.56 $ 3.97 $ 4.31
55 55 4.16 4.54 4.76 4.15 4.42
55 60 4.27 4.73 5.00 4.26 4.48
60 55 4.27 4.73 5.00 4.26 4.70
60 60 4.51 4.99 5.27 4.50 4.84
60 65 4.66 5.25 5.61 4.65 4.93
65 60 4.66 5.25 5.61 4.65 5.22
65 65 4.99 5.61 5.99 4.98 5.42
65 70 5.19 5.97 6.44 5.17 5.54
70 65 5.19 5.97 6.44 5.17 5.93
70 70 5.67 6.49 6.99 5.62 6.23
70 75 5.95 6.96 7.61 5.87 6.40
75 70 5.95 6.96 7.61 5.87 6.95
75 75 6.64 7.73 8.43 6.48 7.40
75 80 7.04 8.39 9.29 6.79 7.64
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
35
OPTION 3
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Adjusted Ages
Second
Annuitant Annuitant Option 3a Option 3b Option 3c Option 3d Option 3e
----------------------------------------------------------------------------------------------
55 50 $ 4.88 $ 5.26 $ 5.48 $ 4.88 $ 5.23
55 55 5.04 5.44 5.66 5.04 5.32
55 60 5.15 5.63 5.91 5.14 5.38
60 55 5.15 5.63 5.91 5.14 5.59
60 60 5.37 5.87 6.16 5.37 5.72
60 65 5.52 6.14 6.51 5.51 5.80
65 60 5.52 6.14 6.51 5.51 6.10
65 65 5.83 6.49 6.87 5.82 6.29
65 70 6.04 6.84 7.34 6.00 6.41
70 65 6.04 6.84 7.34 6.00 6.81
70 70 6.49 7.35 7.87 6.44 7.08
70 75 6.77 7.84 8.51 6.68 7.25
75 70 6.77 7.84 8.51 6.68 7.81
75 75 7.45 8.60 9.33 7.27 8.25
75 80 7.86 9.28 10.20 7.57 8.49
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
36
[Aetna logo]
Aetna Life Insurance and Annuity Company
Home Office: 000 Xxxxxxxxxx Xxxxxx
P.O. Box 30670
Hartford, Connecticut 06150-0670
(000) 000-0000
Group Variable, Fixed, or Combination Annuity Contract
Nonparticipating
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP CONTRACT, WHEN BASED ON
INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT
GUARANTEED AS TO FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE
ADJUSTMENT FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN
EITHER AN INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT
FORMULA DOES NOT APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
